On December 29, 2009, Broadcom announced that it had agreed in principle to pay $160.5 million to settle a securities class action pending in United States District Court for the Central District of California against the company and certain of its current and former officers and directors. (A copy of Broadcom’s press release can be found here.) The action alleged that the defendants had failed to disclose that the company had backdated stock options issued to employees and executives. This settlement is subject to court approval.
Broadcom and its officers and directors have faced multiple civil and criminal liabilities arising out of alleged backdating conduct, most of which have now been resolved. Earlier this month, the U.S. District Court for the Central District of California dismissed the government’s criminal securities fraud case against certain former Broadcom executives, and also dismissed a civil action brought by the U.S. Securities and Exchange Commission (without prejudice).
